On August 15, sources reported that the Trump administration is in talks with U.S. chip giant Intel to acquire a government stake in the company, though the potential size of the investment remains unclear. The proposed move aims to support Intel's planned semiconductor fabrication plant in Ohio, which has faced repeated delays amid the company's financial challenges.

The discussions follow a meeting earlier this week between President Trump and Intel CEO Lip-Bu Tan. While details are still being finalized, the plan envisions the U.S. government purchasing shares to bolster Intel's cash position and ensure progress on its Ohio wafer fabrication campus. Sources cautioned that the talks are preliminary and could end without an agreement.

Intel originally promised to develop its Ohio facility into one of the world's largest chip factories. The project, first announced in 2021, covers roughly 1,000 acres and could eventually host up to eight fabs, with full development expected to cost around $100 billion. The first phase, initially scheduled for completion in 2025, has been delayed to 2027–2028 due to financial and market uncertainties, with current planning extending production into 2030 and beyond.

Since taking office in March, CEO Tan has focused on stabilizing Intel's finances, reducing capital expenditures, consolidating assembly and test operations abroad, and slowing construction in Ohio to align spending with market demand. Any government investment would significantly strengthen Intel's financial position and reinforce Tan's leadership amid earlier calls from Trump for his removal.

The potential government stake aligns with Trump's broader push to strengthen domestic semiconductor manufacturing. Earlier initiatives include the U.S. Department of Defense's $400 million acquisition of preferred shares in MP Materials Corp., making the Pentagon the company's largest shareholder, and an agreement for U.S. chipmakers Nvidia and AMD to remit 15% of their Chinese AI chip revenues to the U.S. government in exchange for export approvals.

Intel shares responded sharply to the news. On Thursday, the stock surged as much as 8.9% during the session, closing up 7.4% at $23.86, valuing the company at approximately $104.4 billion. After-hours trading saw further gains of around 4%.

A White House spokesperson emphasized that discussions remain speculative until formally announced, while Intel declined to comment directly on the talks, stating it remains committed to supporting the U.S. government's technology and manufacturing priorities.

If realized, a government investment in Intel would mark a historic example of direct state involvement in a major private tech company, reflecting the Trump administration's willingness to blur traditional boundaries between national policy and private enterprise.